The Kerowagi District has a dual economy where the formal and a subsistence economy co-exist. The subsistence economy basically supports the vast informal sector which needs to be properly strengthened in order to migrate into a formal economy, particularly into Small to Medium Enterprises (SMEs). SME is a vital economic segment that supports realize development that is broad-based and sustainable.
The SMEs generate enormous benefits at many levels such as job creation, increasing revenue and wealth creation by growing SME and attracting direct investments as outlined under growth goal # 1.6 of the KRA # 1 in the MTDP III. They also help to promote self-reliance and reduce poverty by supporting sustainable livelihoods in the communities. The SME development has not been robust which is impeded by many factors. It requires enabling environment to thrive in programs/activities where people in the wards and communities have comparative advantage in.
SME Growth Goal 1: Create and establish SME enabling environment
The key economic enablers mentioned many times in the preceding sections also add to specific environment for the development of SMEs. Many members of the wards and communities have little or no knowledge on entrepreneurship and financial management, skills to undertake various SME activities, and the financial support to go into SMEs from informal activities. Facilities coupled with training are key preconditions for SME growth.
SME Growth Goal 2: Provide access to financial support and markets
Many people in the wards and communities have comparative advantages in SME activities that are agricultural based. These include coffee cooperative groups, coffee buyers, vegetable (kaukau/potato) and spices farmers, sawmill operators, poultry and piggery owners, and so on. They need to have proper financial support and market access in order for a sustainable SME growth.
SME Growth Goal 3: Increase SME activities
Many SMEs put together produce large quantities of products. It is often undertaken in exclusive settings in homes or on family land usually by family units and like-minded groups, including women and youth groups. The members are engaged either as paid employees or work together to share the profits. Their involvement will further be stimulated with proper assistance that will support surer way of earning sustainable income. In many communities of the 52 wards in the District, there are on-going support provided to establish coffee cooperatives. Some nurseries were established and coffee seedlings supplied. Such initiatives in other economic activities is sure to increase the SMEs in the District. Further, the SMEs need to be adequately financed through less red-tape credit facilities.